Direct Selling and Communities in the Internet Age

Global market research company Euromonitor International released a new strategy briefing, “Direct Selling and Communities in the Internet Age”, highlighting healthy growth prospects for direct selling despite the rising popularity and convenience of e-commerce.
 
According to the strategy briefing, the global direct selling market will record 11.5 percent growth by 2021, driven by developing regions. Euromonitor International’s data suggests the highest Compound Annual Growth Rate (CAGR) of direct sellers for the next five years will come from the Middle East and Africa (7 percent), Asia Pacific (3 percent) and Latin America (2.5 percent).

Tim Barret, senior retailing analyst at Euromonitor International, said, “There is positive correlation between an underdeveloped retail market and the size and growth of direct selling within that region. Direct selling not only operates as a source of income for some individuals in these communities, but as a source of everyday products for others.”
However, according to the strategy briefing, direct sellers need to adapt to the internet revolution as many younger generations are more interested in online shopping and are sceptical of older brands and institutions. While a personal sales model will remain direct sellers’ core strength, maintaining and growing an online presence, both in emerging and developing regions, will be increasingly important going forward.

“Business has the power to change lives, and direct selling more often than not seeks to exploit this potential through its network-centric business model. Improving lives and supporting friends and family will never go out of fashion. However, the way communities are organizing themselves is changing and while the internet will not be a harbinger of doom to direct sellers, it will become a key differentiator,” concluded Barret.